Beginning with the surge in coal use which accompanied the Industrial Revolution, energy consumption has steadily transitioned from wood and biomass to fossil fuels. The early development of solar technologies starting in the 1860s was driven by an expectation that coal would soon become scarce. However development of solar technologies stagnated in the early 20th century in the face of the increasing availability, economy, and utility of coal and petroleum.[43]
The 1973 oil embargo and 1979 energy crisis caused a reorganization of energy policies around the world and brought renewed attention to developing solar technologies.[44][45] Deployment strategies focused on incentive programs such as the Federal Photovoltaic Utilization Program in the US and the Sunshine Program in Japan. Other efforts included the formation of research facilities in the US (SERI, now NREL), Japan (NEDO), and Germany (Fraunhofer Institute for Solar Energy Systems ISE).[46]
Between 1970 and 1983 photovoltaic installations grew rapidly, but falling oil prices in the early 1980s moderated the growth of PV from 1984 to 1996.[citation needed] Photovoltaic production growth has averaged 40% per year since 2000 and installed capacity reached 10.6 GW at the end of 2007,[27] and 14.73 GW in 2008.[47] Since 2006 it has been economical for investors to install photovoltaics for free in return for a long term power purchase agreement. 50% of commercial systems were installed in this manner in 2007 and it is expected that 90% will by 2009.[48] Nellis Air Force Base is receiving photoelectric power for about 2.2 ¢/kWh and grid power for 9 ¢/kWh.[49][50]
Commercial concentrating solar thermal power (CSP) plants were first developed in the 1980s. CSP plants such as SEGS project in the United States have a levelized energy cost (LEC) of 12–14 ¢/kWh.[51] The 11 MW PS10 power tower in Spain, completed in late 2005, is Europe's first commercial CSP system, and a total capacity of 300 MW is expected to be installed in the same area by 2013.[52]
| Capacity (MW)  | Technology type | Name | Country | Location | Notes |
|---|---|---|---|---|---|
| 354 | parabolic trough | Solar Energy Generating Systems |  USA | Mojave desert California | Collection of 9 units |
| 64 | parabolic trough | Nevada Solar One | USA | Las Vegas, Nevada | |
| 50 | parabolic trough | Andasol 1 |  Spain | Granada | Completed November 2008 |
| 20 | solar power tower | PS20 solar power tower | Spain | Seville | Completed April 2009 |
| 11 | solar power tower | PS10 solar power tower | Spain | Seville | Europe's first commercial solar tower |
Solar installations in recent years have also begun to expand into residential areas, with governments offering incentive programs to make "green" energy a more economically viable option. In Canada the RESOP (Renewable Energy Standard Offer Program), introduced in 2006,[53] and updated in 2009 with the passage of the Green Energy Act, allows residential homeowners in Ontario with solar panel installations to sell the energy they produce back to the grid (i.e., the government) at 42¢/kWh, while drawing power from the grid at an average rate of 6¢/kWh (see feed-in tariff).[54] The program is designed to help promote the government's green agenda and lower the strain often placed on the energy grid at peak hours. In March, 2009 the proposed FIT was increased to 80¢/kWh for small, roof-top systems (≤10 kW).[55]
| Name of PV power plant | Country | DC Peak Power (MW) | GW·h /year | Capacity factor | Notes |
|---|---|---|---|---|---|
| Olmedilla Photovoltaic Park | Spain | 60 | 85 | 0.16 | Completed September 2008 |
| Puertollano Photovoltaic Park | Spain | 50 | 2008 | ||
| Moura photovoltaic power station [57] | Portugal | 46 | 93 | 0.16 | Completed December 2008 |
| Waldpolenz Solar Park[58][59] | Germany | 40 | 40 | 0.11 | 550,000 First Solar thin-film CdTe modules. Completed December 2008 |
| Arnedo Solar Plant | Spain | 34 | Completed October 2008 | ||
| Merida/Don Alvaro Solar Park | Spain | 30 | Completed September 2008 | ||
| Planta Solar La Magascona & La Magasquila | Spain | 30 | |||
| Planta Solar Ose de la Vega | Spain | 30 | |||
| Planta Fotovoltaico Casas de Los Pinos | Spain | 28 | |||
| SinAn power plant | Korea | 24 | 33 | Completed October 2008 |
The annual International Conference on Solar Photovoltaic Investments, organized by EPIA, notes that photovoltaics provides a secure, reliable return on investment, with modules typically lasting 25 to 40 years and with a payback on investment of between 8 to 12 years.[60]
Financial incentives supporting installation of solar power generation are aimed at increasing demand for solar photovoltaics such that they can become competitive with conventional methods of energy production.[citation needed] Another innovative way to increase demand is to harness the green purchasing power of academic institutions (universities and colleges). This has been shown to be potentially influential in catalyzing a positive spiral-effect in renewables globally
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